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The Contrasting Effects of Active and Passive Cooperation on Innovation and Productivity: Evidence from British Local Innovation Networks

The Contrasting Effects of Active and Passive Cooperation on Innovation and Productivity: Evidence from British Local Innovation Networks Thumbnail


Abstract

This paper studies the contrasting effects on innovations and productivity arising from active cooperation in innovation activities among competitors and from passive cooperation induced by these activities’ spillovers. A three-stage productivity function is estimated showing that firms’ innovations are supported by their active cooperation within their local innovation network of suppliers and customers and by passive cooperation through sectors’ spillovers. Contrary to this, active cooperation in innovation activities among competitors reduces their innovation rates and, indirectly, productivity. Hence, innovation policies and strategies aimed at restraining active cooperation among competitors, while encouraging it within a firm's local innovation network, may contribute to the system-wide introduction of process and product innovations and ultimately productivity.

Acceptance Date Feb 23, 2017
Publication Date Feb 24, 2017
Publicly Available Date Mar 29, 2024
Journal International Journal of Production Economics
Print ISSN 0925-5273
Publisher Elsevier
Pages 102-112
DOI https://doi.org/10.1016/j.ijpe.2017.02.013
Keywords product innovations; process innovations; R&D spillovers; cooperation; local innovation networks; productivity
Publisher URL https://doi.org/10.1016/j.ijpe.2017.02.013

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